Net sales were $301.4 million; value-added sales increased 4% to a first
quarter record of $187.7 million

Operating profit was a record $21.4 million, or 11.4% of value-added
sales, the ninth consecutive quarterly year-over-year increase

Diluted earnings per share were a record $0.82, up 61% year-over-year

Earnings Guidance

The Company is raising its full-year 2019 adjusted earnings guidance to
$2.80 to $3.00 per share, diluted; a 22% increase over prior year
earnings

“Our momentum continued in the first quarter as we delivered record
earnings and the ninth consecutive quarter of year-over-year value-added
sales and profit growth,” stated Jugal Vijayvargiya, President and Chief
Executive Officer. “We remain intently focused on our multi-pillar
strategy to consistently deliver profitable growth. Based on our first
quarter performance and outlook, we are raising our full-year 2019
adjusted earnings guidance range to reflect a 22% year-over-year
increase in earnings.”

FIRST QUARTER 2019 RESULTS

Net sales for the first quarter of 2019 were $301.4 million, compared to
$303.5 million for the prior year. Value-added sales of $187.7 million
were a first quarter record, up 4% from the prior year. Strong
commercial execution particularly in the defense, energy, and telecom
infrastructure end markets drove the value-added sales growth and more
than offset weakness in consumer electronics.

Operating profit for the first quarter was $21.4 million, or 11.4% of
value-added sales and increased 61% compared to $13.3 million in the
prior year. Operating profit reached the highest level for any quarter
and marks the third consecutive quarter with double-digit profit
margins. The significant improvement in profitability reflects a
favorable sales mix of more differentiated products being sold into
critical applications combined with improved operational performance.

First quarter 2019 net income was $16.9 million, or $0.82 per share,
diluted, up 61% compared to 2018.

OUTLOOK

The Company has now achieved nine consecutive quarters of year-over-year
value-added sales and adjusted operating profit growth. We continue to
demonstrate an ability to navigate macroeconomic uncertainty and market
softness in consumer electronics through the execution of our
multi-pillar strategy. Based on our first quarter performance and
outlook, we are raising full-year 2019 adjusted earnings guidance
approximately 8% from $2.62 to $2.74 per share, diluted, to $2.80 to
$3.00 per share. The midpoint of the revised guidance represents a 22%
increase from the prior year.

ADJUSTED EARNINGS GUIDANCE

It is not possible for the Company to identify the amount or
significance of future adjustments associated with potential insurance
and litigation claims, legacy environmental costs, acquisition and
integration costs, certain income tax items, or other non-routine costs
that the Company adjusts in the presentation of adjusted earnings
guidance. These items are dependent on future events that are not
reasonably estimable at this time. Accordingly, the Company is unable to
reconcile without unreasonable effort the forecasted range of adjusted
earnings guidance for the full year to a comparable GAAP range. However,
items excluded from the Company’s adjusted earnings guidance include the
historical adjustments noted in Attachments 4 and 5 to this press
release.

CONFERENCE CALL

Materion Corporation will host an investor conference call with analysts
at 9:00 a.m. Eastern Time, May 2, 2019. The conference call will be
available via webcast through the Company’s website at www.materion.com
or through www.InvestorCalendar.com.
By phone, please dial (877) 407-0778. Callers outside the U.S. can dial
(201) 689-8565. A replay of the call will be available until May 16,
2019 by dialing (877) 481-4010 or (919) 882-2331; please reference
replay ID number 41629. The call will also be archived on the Company’s
website.

FORWARD-LOOKING STATEMENTS

Portions of the narrative set forth in this document that are not
statements of historical or current facts are forward-looking
statements, in particular, the outlook provided above. Our actual future
performance may materially differ from that contemplated by the
forward-looking statements as a result of a variety of factors.

These factors include, in addition to those mentioned elsewhere herein:

Actual net sales, operating rates, and margins for 2019;

The global economy, including the impact of tariffs and trade
agreements;

The impact of any U.S. Federal Government shutdowns and sequestrations;

The condition of the markets which we serve, whether defined
geographically or by segment, with the major market segments being:
consumer electronics, industrial components, medical, automotive
electronics, defense, telecommunications infrastructure, energy,
commercial aerospace, and science;

Changes in product mix and the financial condition of customers;

Our success in developing and introducing new products and new product
ramp-up rates;

Our success in passing through the costs of raw materials to customers
or otherwise mitigating fluctuating prices for those materials,
including the impact of fluctuating prices on inventory values;

Our success in identifying acquisition candidates and in acquiring and
integrating such businesses;

The impact of the results of acquisitions on our ability to fully
achieve the strategic and financial objectives related to these
acquisitions;

Our success in implementing our strategic plans and the timely and
successful completion and start-up of any capital projects;

The cost of gold, silver, platinum, palladium, and copper is passed
through to customers and, therefore, the trends and comparisons of net
sales are affected by movements in the market price of these metals.
Internally, management also reviews net sales on a value-added basis.
Value-added sales is a non-GAAP financial measure that deducts the value
of the pass-through metals sold from net sales. Value-added sales allows
management to assess the impact of differences in net sales between
periods or segments and analyze the resulting margins and profitability
without the distortion of the movements in pass-through metal prices.
The dollar amount of gross margin and operating profit is not affected
by the value-added sales calculation. The Company sells other metals and
materials that are not considered direct pass throughs, and these costs
are not deducted from net sales to calculate value-added sales.

The Company’s pricing policy is to pass the cost of these metals on to
customers in order to mitigate the impact of price volatility on the
Company’s results from operations. Value-added information is being
presented since changes in metal prices may not directly impact
profitability. It is the Company’s intent to allow users of the
financial statements to review sales with and without the impact of the
pass-through metals.

Attachment 5

Materion Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures – Profitability

(Unaudited)

First Quarter Ended

Fourth Quarter Ended

(Millions except per share amounts)

March 29, 2019

March 30, 2018

December 31, 2018

GAAP as Reported

Net Sales

$

301.4

$

303.5

$

298.1

Operating profit

21.4

13.3

14.4

Net income (loss)

16.9

10.6

(20.8

)

EPS – Diluted

$

0.82

$

0.51

$

(1.03

)

Operating Profit Special Items

Cost reductions

$

—

$

—

$

5.6

Legacy legal & environmental costs

—

0.7

—

LIFO inventory adjustment

—

—

(1.9

)

Total operating profit special items

$

—

$

0.7

$

3.7

Operating Profit Special Items – net of tax

$

—

$

0.6

$

4.1

Other Non-Operating Expense Special Items – net of tax

$

—

$

—

$

31.4

Tax Special Item

$

—

$

(0.6

)

$

(1.3

)

Non-GAAP Measures – Adjusted Profitability

Value-added (VA) sales

$

187.7

$

181.3

$

185.8

Operating profit

21.4

14.0

18.1

Operating profit % of VA

11.4

%

7.7

%

9.7

%

Net income

16.9

10.6

13.4

EPS – Diluted

$

0.82

$

0.51

$

0.65

In addition to presenting financial statements prepared in accordance
with U.S. generally accepted accounting principles (GAAP), this earnings
release contains financial measures, including operating profit, segment
operating profit, net income, and earnings per share, on a non-GAAP
basis. As detailed in the above reconciliation and Attachment 4, we have
adjusted the results for certain special items such as non-cash pension
settlement charges, cost reduction initiatives (i.e., severance), legacy
legal and environmental costs, certain LIFO inventory adjustments, and
certain income tax items from the applicable GAAP financial measure.
Internally, management reviews the results of operations without the
impact of these costs in order to assess the profitability from ongoing
activities. We are providing this information because we believe it will
assist investors in analyzing our financial results and, when viewed in
conjunction with the GAAP results, provide a more comprehensive
understanding of the factors and trends affecting our operations.